A new engine costs $450,000 and has a service life of 5 years

Operating and maintenance costs start at $15,000 for the first year and increase by $5,000 each year after.

At the end of 5 years the salvage value is $75,000

MARR is 8%

What is the capital recovery cost for the engine?

What us the annual equivalent operating and maintenance cost?

What is the total annual equivalent cost for the engine?